Tata Power Company Ltd.

Tata Power Company has decided to issue unsecured, subordinated, listed and rated securities in the form of Non-Convertible Debentures (NCD) of Rs 1,500 crore. These debentures have a maturity of 60 years and there is a call option with the company, which can be exercised at the end of 10 years from deemed date of allotment and at the end of every year thereafter.

The coupon (which may be deferred at the company’s option) on the debentures is set at 10.75% p.a. payable semi-annually, with a step up provision if the debentures are not called after 10 years. These debentures rank senior only to the share capital of the company. This instrument is rated-AA/stable by CRISIL and AA by CARE.